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EDDIE MAYHEW'S
CLASSIFICATION STATION
PERIODICALS & OTHER MAIL CONSULTING
The Postal Service & The Mailing Industry My Thoughts and Observations
This page represents my thoughts on what is happening with today's Postal Service and the mailing industry. It is strictly my opinion but hopefully, interesting food for thought.
A day we thought would never happen has happened. Yes! For the first time in 97 years postage is going down. OK, so maybe it isn’t really going down since prices were based on a temporary surcharge, but nevertheless you will be paying less for postage in April than you have for the last few years. The Postal Service selected April 10th 2016 as the big day to break even with the amount needed to shrug off the exigent surcharge. A last minute rescuer might have come riding over the hill at the eleventh hour and fifty-ninth minute. That would either be the court or Congress. They did not. The courts did not rule and Congress failed to act again.
USPS says they will lose $2 billion at a time when financial stability is more necessary than ever. The Postal Service is now losing money on consolidations, enough people have left to cause USPS to begin hiring again (more part-time than career), losses on mail classes are not as severe as they have been, and the need for new vehicles is outweighing any ideas of patching the old ones again. Things aren't great!
The evidence seems to show that things have been bottomed out. However the only direction to go when you bottom out is up.
Packages continue to grow. First-Class Mail losses are slowing down. Standard Mail is gaining ever so slightly and Periodicals are still on shaky ground but there is always hope. Over 9,000 new vehicles have been green-lighted for replacing older vehicles. Facility consolidations are on hold. The absence of the exigent surcharge can be an incentive to create more mail.
No one is painting a rosy picture of the near term but the Postal Service is resilient. The mailing business is still there. Print is not on its last legs. It is hard to reach down deeper when facing these hurdles but if any governmental organization can find its footing, the Postal Service will and with the lowered rates get help from the mail industry sector in increased business.
APRIL 2016
COMING SOON
The next Northeast Area Focus Group meeting is scheduled for Room 4500 in New York City's JAF Post Office
building on 33rd St. and 8th Avenue May 4th 2016 at 8:30 am. Coffee and lunch included.
The Eastern Area is scheduling its next Focus Group meeting in Broadview Heights OH for June 23rd 2016. The Meeting will start at 8:30 a.m. Registration begins earlier 8. Deputy PMG Ron Stroman is expected to be the
guest speaker.
The Periodicals Advisory Group will be meeting in Washington DC May 12, 2016 to discuss potential changes to
Periodicals mail.
© 2014 Eddie Mayhew's Classification Station. All rights reserved.
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TODAYS POSTAL FAST FACT
MARCH 22 1981 - POSTAGE ROSE FROM 15 TO 18 CENTS
TODAY'S INDUSTRY FAST FACT
MARCH 2 1923 - THE FIRST ISSUE OF TIME MAGAZINE WAS PUBLISHED
